With the rise of globalization, supply chains now spread across the world. Consider the following simplied stages of production for a smartphone: a) The U.S.-based smartphone company develops the designs for the new smartphone. b) A rare minerals broker in China buys $15 billion worth of minerals from around the world, including $5 billion from U.S. mines. c) A microchip producer in Japan buys half of these minerals for $10 billion; a camera and screen producer in South Korea buys the other half for $10 billion. d) A manufacturing factory in China buys the microchip, cameras, and screens for $22 billion; it obtains the rest of the assembly materials domestically for $3 billion. e) The U.S.-based smartphone company pays the factory $28 billion for the manufactured phones. It programs and uploads the software. Any updates from previous versions of the software are available for existing phone owners as a free download. f) The company keeps $10 billion worth of smartphones in inventory, then sells the rest to U.S. retailers for $26 billion. g) The retailers sell the phones in the United States, for a total of $30 billion in revenue. Given the information above, which of the following is true of the value added portions of the production process that will count towards U.S. GDP? 0 A. It includes $5 billion from U.S. mines for raw materials, $8 billion from the U.S.-based smartphone company, and $4 billion from U.S. retailers. O B. It includes $5 billion from U.S. mines for raw materials, $17 billion from the U.S.-based smartphone company, and $4 billion from U.S. retailers. O C. It includes $10 billion from the manufacturing factory in China, $10 billion from the microchip producer in Japan, and $15 billion from the U.S.-based smartphone company. G) D. It includes $15 billion from the manufacturing factory in China, $10 billion from the microchip producer in Japan, and $5 billion from U.S. retailers. Given the information above, how much does the production of a smartphone contribute to U.S. GDP in total? The production of a smartphone contributes $|:| billion to U.S. GDP. Which of the following factors are not included in the calculation of U.S. GDP? I:I A. Depreciation of the phones in inventory |:| B. Value added by the U.S.-based smartphone company I:I C. Value added by U.S. retailers |:| D. Value added from technological development